YEAR ESTABLISHED: 1883
HEADCOUNT: 39,900 t (2008: 44,900)
Coatings REVENUEs: $ 9.115 billion t (2008: $10.935)
TotaL REVENUEs: $12.239 billion t (2008: $15.849)
net income: $336 million t (2008: $538)
R&D Budget: $403 million t (2008: $468)
• Performance Coatings: 34%
• Industrial Coatings: 25%
• Architectural Coatings EMEA: 16%
• Optical & Specialty Materials: 8%
• Commodity Chemicals: 10%
• Glass: 7%
Charles Bunch, CEO and chairman; J. Rich Alexander, senior VP, performance coatings; Pierre-Marie De Leener, senior VP, architectural coatings EMEA and president, PPG Europe; Charles Kahle, chief technology officer and VP, research and development, coatings.
In 2009, coatings revenue for PPG fell to $9 billion, a drop of nearly $2 billion. Sales in the Performance Coatings segment—Aerospace, Architectural Coatings Americas and Asia Pacific, Automotive Refinish and Protective and Marine Coatings—decreased $621 million or 13 percent in 2009. Sales declined as a result of lower sales volumes, particularly in the automotive refinish business and architectural coatings—Americas and Asia Pacific businesses. The volume decline in automotive refinish was most pronounced in the U.S. and Europe, while the decline in architectural coatings was mainly in the U.S. and Latin America.
Sales in the Industrial Coatings segment—Automotive Coatings, Industrial Coatings and Packaging Coatings— decreased $931 million or 23 percent in 2009 due to lower sales volumes, most notably in the automotive and industrial businesses, reflecting the severe decline in demand resulting from the global recession. Volume declines in the segment occurred in all major regions.
In the Architectural Coatings-EMEA (Europe, Middle East and Africa), sales decreased $297 million or 13% in 2009.
PPG continued to expand its footprint in the Asia Pacific region, which posted record earnings for the year and now represents approximately 18 percent of PPG’s coatings portfolio.
In 2009, PPG launched a cool roof color registration initiative with the Cool Roof Rating Council (CRRC) and the Energy Star Cool Roof program. The initiative is designed to help metal roof manufacturers expedite registration of their cool roof coating colors enabling them to promote tax credits and meet “green” building criteria.
The initiative results from a modification Energy Star Cool Roof recently made to its Cool Roof program, which now accepts products registered with CRRC under its Color Family Program. Under the CRRC program, PPG can register a “representative” color in one of 17 standard color families, provided it has met CRRC’s prescribed three-year aged exposure criteria. New or additional colors within the same color family can be added to the CRRC registry without three-year test data as long as they meet CRRC’s initial ratings criteria for solar reflectance (SRV), thermal emittance (TE) and color. PPG can then help metal roofing manufacturers register these colors with CRRC and Energy Star Cool Roof under their own company names.
PPG can accelerate dual color registration with CRRC and Energy Star Cool Roof because it is the only coatings manufacturer with registered representative color standards, including three-year test data, for all 17 CRRC color families in both polyvinylidene fluoride (PVDF) and siliconized-polyester coating technologies. Flagship Duranar ULTRA-Cool coatings from PPG are based on PVDF technology. Superl II ULTRA-Cool coatings by PPG are made with siliconized-polyester resins. PPG currently has 154 colors registered with CRRC.
In 2009, PPG Industrial Coatings introduced VIVATI VM coatings, a highly chromatic, high-performance vacuum metalized coating system that delivers a new level of vibrant color to consumer products.
Vacuum metalized coatings are used to place a thin metal layer on plastic substrates, and they decorate many smartphones, music players and other hand-held devices in bright, shiny colors. Vacuum metalized coatings also adorn toys, personal computers, automotive trim, sporting goods, decorative fixtures and many other products.
PPG’s new vacuum metalized coating system represents a significant advance in the industry. According to Andrew Stadler, global product manager for PPG Industrial Coatings, “Manufacturers typically purchase three coating layers—primer, base coat and clear coat—from multiple suppliers. VIVATI VM coatings offer the first integrated system from a single supplier.”
As a single-source coating system, Stadler said VIVATI VM coatings enable manufacturers to more effectively manage the vacuum metalizing process. “Because the primer, base and clear coats all come from one supplier, they work together for performance and application and give manufacturers a larger operating window with fewer mistakes and higher production output. This helps to increase yields and expedite the launch of new products and colors.”
Stadler added that vacuum metalizing operations using single-source VIVATI VM coatings require less training than those using multiple suppliers, which can help manufacturers to reduce risk and launch new products and new colors more quickly.